According to Zhitong Finance APP, Guotai Junan released a research report stating that the overall revenue of the telecommunications industry in 25H1 showed steady growth, with profits on the rise. Based on a sample of 91 companies in the industry, the telecommunications sector achieved a total revenue of 1,785 billion yuan (up 10.07% year-on-year) and a net profit attributable to the parent company of 160.43 billion yuan (up 11.26% year-on-year), with a net profit attributable to the parent company after deducting non-recurring items of 149.02 billion yuan (up 13.04% year-on-year). By segment, the optical module, communication PCB, network equipment manufacturers, and IoT module sectors performed well, with both revenue and net profit growth rates ranking among the top five in the industry. The current industry is underweight, with capital expenditures on computing power maintaining high growth. The domestic market is also accelerating in line with the global AI development process, and there is still significant upward potential in the telecommunications industry's holdings.
<h2>Guotai Junan's main points are as follows:</h2>
25H1 Overall revenue of the telecommunications industry shows steady growth, with profits on the rise
Based on a sample of 91 companies in the industry (same below), the telecommunications sector achieved a total revenue of 1,785 billion yuan (up 10.07% year-on-year) and a net profit attributable to the parent company of 160.43 billion yuan (up 11.26% year-on-year), with a net profit attributable to the parent company after deducting non-recurring items of 149.02 billion yuan (up 13.04% year-on-year). In Q2 of 25, the telecommunications industry continued to show steady revenue growth and accelerated profits. Based on a sample of 91 companies in the industry (same below), the total revenue reached 942.48 billion yuan (up 10.91% year-on-year), with a net profit attributable to the parent company of 98.68 billion yuan (up 12.33% year-on-year), and a net profit attributable to the parent company after deducting non-recurring items of 91.26 billion yuan (up 12.94% year-on-year).
By segment, the optical module, communication PCB, network equipment manufacturers, and IoT module sectors performed well, with revenue and net profit growth rates ranking among the top five in the industry
In 25H1, the sectors with the highest revenue growth rates were optical modules, communication PCBs, network equipment manufacturers, IoT modules, and RF components related to base station equipment. The sectors with the highest net profit growth rates were optical modules, communication PCBs, network security and visualization analysis, IoT modules, and network equipment manufacturers. In 25Q2, the optical module, communication PCB, network equipment manufacturers, and IoT module sectors experienced high growth, with revenue and net profit growth rates ranking among the top five.
The industry is underweight, with capital expenditures on computing power maintaining high growth, and the domestic market is also accelerating in line with the global AI development process, with significant upward potential in the telecommunications industry's holdings
Since 2024, NVIDIA has continued to accelerate GPU capability upgrades, Broadcom's AI-related revenue and network-side switching chip shipments have grown rapidly, and North American cloud computing giants are also continuously increasing their investments, thus continuing to drive companies closely related to the overseas AI industry chain to achieve impressive performance. Guotai Junan predicts that the AI computing power industry chain will continue to accelerate its development in 2025, coupled with the continuous evolution of demand on the inference side, which is expected to bring broader growth space, and the telecommunications industry's related industry chain will continue to benefit.
Recommended targets
Optical Modules: Zhongji Innolight (300308.SZ), Xinyi Sheng (300502.SZ), Guangxun Technology (002281.SZ), HGTECH (000988.SZ), Dekeli (688205.SH);
CPO/Silicon Photonics: TFC (300394.SZ), Shijia Photon (688313.SH), Yuanjie Technology (688498.SH), Guangku Technology (300620.SZ), Changguang Huaxin (688041.SH), Taicheng Light (300570.SZ); PCB: Huadian Co., Ltd. (002463.SZ), Shennan Circuit (002916.SZ); End-side: Guanghetong (300638.SZ), ZTE Corporation (000063.SZ).
IDC/Liquid Cooling: Wangsu Science &amp; Technology (300017.SZ), Aofei Data (300738.SZ), Guanghuan Xinnet (300383.SZ); Network Side: ZTE Corporation, Ruijie Networks (301165.SZ), Unisplendour Corporation (000938.SZ), FiberHome Telecommunication Technologies (600498.SH), Feiling Tech (301191.SZ); High-speed Copper Cable: Zhaolong Interconnect (300913.SZ); Operators: China Mobile (600941.SH), China Telecom (601728.SH), China Unicom (600050.SH); Military Communication Related Targets: Haige Communication (002465.SZ), Qiyi Er (603712.SH), Changying Tong (688143.SH).
U.S. Stock Related Targets: Credo (CRDO.US), MaxLinear (MXL.US), Arista Networks (ANET.US), Century Internet (VNET.US), Coherent (COHR.US), Lumentum (LITE.US), Broadcom (AVGO.US), Marvell (MRVL.US), AXT (AXTI.US).
Risk Warning
Impact of China-U.S. trade friction; industry investment below expectations; demand below expectations

300308

000988

300394

CITIC Securities released a research report indicating that the overall revenue of the telecommunications industry will grow steadily in the first half of 2025, reaching CNY 1,785.003 billion, a year-on-year increase of 10.07%; the net profit attributable to the parent company will be CNY 160.432 billion, a year-on-year increase of 11.26%. The optical module, communication PCB, network equipment manufacturers, and IoT module sectors performed excellently, with revenue and net profit growth rates ranking in the top five of the industry. Pre-calculated capital expenditures for computing power will continue to grow significantly, and the industry still has considerable upward potential

Zhitong

Zhongji Innolight

HGTECH

Cathay Securities and Haitong Securities: The communication industry profits accelerated in H1 2025, and the computing power sector performed brilliantly